Visit www.GREAT.gov.uk for guidance on how to research overseas markets as well as a range of other important issues for exporters.

France in world business rankings

Ease of doing business in France according to the World Bank

Doing business in France

France is the world’s fifth largest economy and the second largest consumer market in Europe. Growth forecasted for France by the Organisation for Economic Co-operation and Development (OECD) in 2016 is 1.7%.

It is a large, open and diversified market, is within easy reach of the UK and offers opportunities to sell UK products and services across all sectors.

France is a similar market to the UK with similar business risks and requirements. If your product or service is successful in the UK, there’s a good chance you’ll be successful in France.

However, French businesses can be wary of buying outside France. UK companies need to reassure customers and clients about quality, price and reliability.

Getting started in the French market

There are specialist trade experts in the British Embassy in Paris and trade offices in Lyon and Bordeaux. These teams focus primarily on high value sectors that offer the best fit with UK exporting strengths and provide the best potential for UK export success. Core interests for exports include aerospace, defence and security, energy (including supply chains for both nuclear and renewables), food and drink.

Outside these areas, the Department for International Trade (DIT) team in France increasingly works with external partners to support British exporters.

Sales through a local branch in France

This can be through either the establishment of a permanent branch or a French subsidiary company.

If you set up a French subsidiary company you need to register with the local Chamber of Commerce (site in French).

If you set up a branch or subsidiary in France you will need a bank account for day-to-day business activities. Most international banks have offices in France and it’s easy to set up foreign currency accounts.

Online selling to France

If you are selling your goods over the internet to private consumers you must be registered for Value Added Tax (VAT) with the French tax office when your annual turnover reaches 35,000 euros.

You can start exporting in a few steps online. The DIT can help you find the online marketplace best suited to your product or service in France and access preferential deals negotiated by government.

Getting finance to fulfil an export contract to France

Schemes are available to UK companies selling products and services to France to make it easier to fulfil an export contract. Contact your bank or specialist financial organisations for assistance.

UK Export Finance (UKEF) has significant risk capacity to support exports to France. Contact one of UKEF’s export finance advisers for free and impartial advice on your finance options.

Getting paid in France

You may wish to talk to a specialist about finance, including how to get paid in France. This could be a bank, accountant or you can contact the DIT team in France to help find a financial adviser in France.

Your contract will specify the terms for payment. If there is any dispute you will need to go through the French legal system for resolution.

Within the EU, many businesses use payment on account in much the same way as within the UK.

Customers in France may require credit terms to buy your products and services.

Payment conditions must be factored into prices. For business-to-business transactions these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment.

Standard payment terms for business-to-business transactions in the EU are 60 calendar days and 30 calendar days for public authorities. However, in France, payment terms are often 90 days. Late payment interest can be claimed when terms are not met.

Currency risks when exporting to France

If you have not fixed your exchange rate you have not fixed your price.

You should consider whether the best option for you is to agree terms in Sterling or Euros in any contract. You should also consider getting expert financial advice on exchange rates (sometimes called FX).

Transferring money from France

Capital can be moved in and out of France within the EU without any restrictions in principal. However you need to inform customs if it’s more than 10,000 euros.

Legal considerations of doing business in France

EU legislation is the basis of the law for business in France.

Contact the DIT team in France to help find tax and legal advisers before entering into agreements in France.

Export licences for France

You may need a licence to supply goods on the UK strategic export control lists to France.

Product requirements in France

Product standards are the same in most EU member states. If you sell products in the UK it’s likely that you already comply with standards in other EU countries.

Many products require a CE marking before they can be sold in the European Economic Area (EEA). This marking proves your product has been assessed and meets EU safety, health and environmental protection requirements.

You should consider taking out product liability insurance if you manufacture or supply a physical product that is sold or given away for free.

Labelling your products for France

Labelling should be translated into French. French versions should be clearly visible if multi-language labelling is used. Certain products, such as foodstuffs and textiles, have specific labelling requirements.

You can choose to use the e-mark on packaging when exporting food products to France, or use France’s rules on weights and measures.

Customs and documentation in France

France is part of the EU single market. This allows the free movement of goods and services without customs checks or the need to pay duty (except excise).

Goods can be sent to France without special customs documentation except in the case of sales to international organisations based in France and to special EU territories controlled by France. These are treated as exports.

You must get a Certificate of Posting (form C&E 132) from the post office branch and you should ensure it’s date stamped. This supports the VAT zero-rating of your goods. If you’re exporting UK duty paid excise goods, you will need the certificate of posting form to support a claim for reimbursement of the UK excise duty.

For bigger orders, most businesses use a courier or freight forwarder.

Terms of delivery for France

Your contract should include agreement on terms of delivery using Incoterms.

Language and culture in France

When in business meetings you should:

avoid using first names

recognise and respect where there is a business hierarchy and always address people as Mr (Monsieur) or Ms (Madame)

remember if you speak French that the formal ‘vous’ form is probably most appropriate and ‘tu’ can be regarded as lacking respect

Finding opportunities in France

You should do as much market research and planning as possible before exporting to France, using both desk research and visits to the market. You need to determine if there is a market for your product or service and whether your pricing is competitive.